The growth of online trading in South Africa is a very promising business.
Many beginners are still wondering about how to start online trading.
Maybe among you are still just finding information about online trading in 2019, so you are still in the stage of learning about the ins and outs of Online trading.
One of the keys that must be and must be done by beginners is learning.
Without learning about what you have to do to start a business this is a mistake that will certainly plunge you into a huge loss.
Surely you don’t want the money you deposit into your trading account to disappear without giving any profit?
Before you start online trading, by choosing the type of STP account, Crypto account or ECN, you can use a demo account from TenkoFX.
This will be the basis for you learning online trading, by joining TenkoFX you can learn with various educational materials available, which broaden your horizons and make you more confident.
Online Trading as a source of income
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Currently, there are many activities to gain additional income.
One of the simple activities that can be carried out and has the potential to provide profits in trading.
Trading is an activity of trading investment instruments in a short period of time.
Trading activity is also a trading activity that can provide benefits in a short span of time.
Therefore, to trade, a trader needs to be careful in choosing investment instruments that will buys.
Why Trade Online?
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Many people who have joined the world of trading, said that trading activities are very profitable.
Trading was seen as an alternative to getting money briefly.
Therefore, not a few people who had been ordinary about trading became interested in it.
Trading, whatever the instruments, is indeed a very promising profit. Indeed this assumption is not wrong, it is not uncommon for anyone to gain wealth in a short time with trading.
But this must be accompanied by an understanding of the risks involved in trading itself. So, trading should not only be seen from the positive side.
Even so, trading is considered very suitable for someone with limited capital who has a lot of free time.
By knowing the ins and outs, of course, you can get additional income from trading.
Reasons for Online Trading for additional income
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Online trading is a promising activity as one way to get extra income, here are some reasons why many try to trade.
Online Trading Can Be Done at Home
Now, trading, whether stocks, forex, commodities, futures, or options, everything can be done online.
With the advances in online trading technology too, you can get income from home.
Simply by using gadgets like laptops, computers, tablets, even smartphones, without having to go to the office.
With the online trading feature, makes it easier for you in several ways.
Online trading applications, in addition to providing pricing information facilities, also contain information about market research, both for stock and forex instruments or cryptocurrency.
Trading is Easier with the Auto Trading Feature
Trading becomes an easy activity to do with the auto-trading feature provided by the broker.
This feature helps you buy and sell shares based on orders automatically.
You also do not need always with continuously monitoring the price movements of your trading instruments, both stocks, and forex.
You can place buying and selling prices according to your Trading Plan.
Relatively Low Costs
With online trading, this activity also has a low-cost advantage. In online trading, the trading system is fully automated.
You have full direct control as a trader, to start online trading, even with only 10 $ you can do this activity at TenkoFX with an STP account or Crypto account.
Trading can be done part-time
Maybe sometimes you feel bored working as an employee, and you are looking for ways to increase income beyond your basic salary.
One way you can do this is by choosing a trading path as part-time job besides your employees.
The forex market and commodities are active for 24 hours on weekdays.
If you choose forex or commodities as a trading instrument, then your trading hours can be adjusted flexibly.
But it is different from trading stocks. The stock market is only open following the working hours. In this case, forex is better.
Trading Give Additional Money
Online trading really promises extra money, it can even make someone get rich quickly.
Trading is indeed an easy way to make money, but if you want to become a trader, then you have to understand the ins and outs of the instruments you traded.
If you want to choose forex trading, then you need to understand forex instruments to the ins and outs.
Likewise with shares. If you want to start stock trading, you also need to understand the stock instruments up to the ins and outs.
If you already have the ins and outs of sufficient knowledge, you can start trading to looking for additional income.
Started from a Demo Account
Before starting stock trading or forex, you can start with a demo account first.
The demo account is useful as a learning tool before you go directly in real trading.
Now, many brokers and financial media, especially in the forex and stock markets, provide facilities for demo trading account simulation.
Which allows us to easily register and try demo trading on demo accounts, the money used is only virtual money.
To try a demo account you don’t have to have money, because you can enjoy a demo account for free and until satisfied.
However, be careful. Trading has the risk.
Even though you feel you can easily make a profit on a demo account, that doesn’t mean you can do the same with a real account.
This is because demo accounts and real accounts have some technical and psychological differences.
Choosing Online Trading Instruments
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Trading can be done in various investment instruments CFD, forex or crypto trading.
In choosing a trading instrument, there are several criteria that need to be fulfilled so that you as a trader can trade comfortably:
- Liquidity of trading instruments. Instruments that have high liquidity will often be traded and easy to catch profit.
- Fluctuations in the price of trading instruments. Trading activities are activities that take advantage of price fluctuations to make a profit. If prices fluctuate high, the greater the chance of profits, the greater the potential risk.
- Level of leverage of the trading instrument. There are several brokers from certain trading instruments that provide leverage of up to 1: 100. the greater the level of leverage, the greater the chance of the profits obtained, also the greater the potential risk will be.
- Initial Capital Deposit. During this time trading activities are always considered expensive, but now, trading can also be done with very affordable capital. Trading can start from only 10 $
Here are examples of trading instruments that you can choose for your trading activities.
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Stock trading is one way of online trading, shares are proof of ownership of a company. Companies that need capital will sell a portion of their shares in the Stock Exchange, to then be traded according to the trading mechanism prevailing in the stock exchange.
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Forex stands for foreign exchange or foreign exchange.
In forex trading, the instruments transacted are foreign currencies.
There is not much difference with a money changer, because the transactions carried out are the same, namely exchanging currencies.
The difference in money changer transactions, generally done at the money changer office, while in forex trading, it is not necessary, we can trade at home.
Forex instruments have a large capitalization value, so they are not easily played by big players, as happens in stocks.
In addition, the forex market is open 24 hours during the working day, so it gives traders more freedom to choose a trading time.
This makes forex trading attractive.
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Apart from stock and forex instruments, there are also futures instruments that can be used as trading tools.
Futures or also called future is a standard contract traded on a futures exchange, to buy or sell a reference asset from a financial instrument at a future date, at a certain price.
Assets that are used as a reference in futures trading can be commodities such as gold or oil, can be in the form of a foreign currency or forex, can also be in the form of global stock indices, such as Nikkei, Hang Seng, and others.
Futures have a trading mechanism similar to forex, this makes futures trading as attractive as forex trading.
Nowadays, the growth of digital currencies is also increasingly prevalent among traders, many cryptocurrencies is a tool of trading, Bitcoin, Ethereum, Litecoin and the like.
This growth gives traders the opportunity to make a profit from crypto online trading.
In 2017 the value of Bitcoin was at its highest value, and in 2019 there were still many traders who hoped that Crypto’s value would always rise and repeat previous successes.
To start Crypto trading, you only need 10 $ of capital at the TenkoFX broker.
Online trading is not gambling
Trading activity is certainly different from gambling. The difference lies in the depth of the analysis carried out when doing the transaction position.
Gambling is identical to making a chancy transaction position, without a strong analytical basis and often there is no theoretical basis.
Different from trading activities.
When as a trader carry out a transaction position, everything is done based on careful calculations and controlled analysis.
Good traders always anticipate price decline by setting a cut loss limit. In addition, traders who can control themselves also set limits on profit-taking, and are not greedy.
If a trader makes a transaction position with a probability of 60% -80% for profit, it is referred to as trading.
Whereas if someone trades a position with an unclear or uncalculated profit probability, that is called speculation and even tends to gamble.
If you want to trade, don’t be mistaken about trading and gambling.
This lack of understanding of the difference between trading and gambling is the reason makes many investors fall.
Online trading is one way to get income just working from home, some success stories have provided inspiration to start trading.
Some have made more than 1900 $ profit with only 700 $ capital, this is part of the success story in online trading.
But there are also bad stories, where traders experience bankruptcy because of improper trading methods.
So you must understand the risk of trading, in addition to unlimited profit potential.